11. Refer to Problem 10 and the computer solution shown in Figure 3.16. a. Suppose the risk index for the stock fund (the value of Cs) increases from its current value of 8 to 12. How does the optimal solution change, if at all? b. Suppose the risk index for the money market fund (the value of CM) increases from its current value of 3 to 3.5. How does the optimal solution change, if at all? c. Suppose Cs increases to 12 and CM increases to 3.5. How does the optimal solution change, if at all?
11. Refer to Problem 10 and the computer solution shown in Figure 3.16. a. Suppose the risk index for the stock fund (the value of Cs) increases from its current value of 8 to 12. How does the optimal solution change, if at all? b. Suppose the risk index for the money market fund (the value of CM) increases from its current value of 3 to 3.5. How does the optimal solution change, if at all? c. Suppose Cs increases to 12 and CM increases to 3.5. How does the optimal solution change, if at all?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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I need question 11, question 10 is only for background information
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